After you have gotten familiar with your credit score and have saved up for a down payment, you are ready to get your car loan. You can go to a local dealership, bank, or credit union to get a loan. Searching for the best car loan rates is easier than ever before now that you can quickly and conveniently get quotes online.
While it may be tempting to accept the first loan offer you receive, it can save you a lot of money in the long run to shop around to find the lowest auto loan rates. Whether you choose to shop online or visit local lenders to shop around online, you should complete your loan shopping within a two-week time frame in order to avoid lowering your credit score.
Try out a variety of different scenarios while shopping around to see the financing options available to you.
For example, see what auto loan rates you could secure if you make a $500 down payment as opposed to no down payment. Different loan terms can also impact the interest rates as well.
The best places to shop around for the lowest auto loan rates can be found at:
- Local credit unions – Credit union auto loan rates are some of the best lending institutions, yet credit unions are often overlooked when it comes to financing options. In some cases, credit unions are willing to lend to borrowers with bad credit scores if they can prove that they are financially responsible in other ways. Credit unions often offer the best used car loan rates.
- Your Bank – If you have an existing relationship with a banking institution, you should see what interest rates they are offering for car loans. The best bank for auto loans can vary so shopping around is the best way to get a good deal on your loan.
- Online Lenders – There are various online lending institutions that offer free quotes on auto loan rates in addition to competitive deals.